Buy Signals on the Way - AGQ, GDX, GLD and SIL

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I'm going to go out on the limb and say that I expect to see BUY signals across the board in the precious metals sector sometime next week.  And I'll show you why with charts of AGQ, GDX, GLD and SIL.

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But first, the obligatory housekeeping for my TSI Trading record.  Just one to record for Friday - a buy of Proshares Ultra Silver (AGQ) for $118.45.  Honestly, I made three purchases of AGQ on Friday, but will record these trades as one at the average blended price of $118.45.
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Click on the chart to ENLARGE




OK, now for some thoughts and analysis of the upcoming week in the precious metals space.
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The sell off on Friday, steep, emotional and vicious as it was, did wonders for getting us ready for the next leg up.  Not only did it scare the pants off the weak, it also created a beautifully crafted True Strength Index (TSI) indicator trend line above the ZERO crossover that we can use to game the next BUY  signal. Something you will observe in all four charts is not only the favorable trajectory and location of the TSI trend line and how it is likely to be played out, but also the issue of unfilled open gaps on each chart, except GLD.  My thought is that both of these dynamics (TSI trend line and open gaps) are going to play very favorably for the precious metal bulls next week.

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In alphabetical ticker symbol order, let's begin with a look at Proshares Ultra Silver (AGQ). First, you will notice that a similar TSI setup that developed towards the end of October, and how it was favorably resolved with an accurate and timely BUY signal.  The current setup, however, will be resolved in fewer days as the slope of the TSI trend line is noticeably steeper.  Which is to say that a single day of strong price action will likely trigger a trend line break.
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The thing one has to keep in mind, and it is not appreciated by the casual observer, is that these setups are occurring above the ZERO line.  Remember, when the TSI is rising above ZERO, price is always rising.  So, when the trend line break occurs, the TSI will be rising from just barely below or slightly above ZERO, triggering the bullish BUY sign of the ZERO crossover.

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Now let's look at the Market Vectors Gold Miner ETF (GDX). Here we find an open gap and just below that an impressive layer of support.  The gap may or may not get filled but I would be quite surprised if price is able to penetrate the layer of support.  I think too much buying will come in to permit that - for very long, in any event.  We notice the TSI is heading in a sharp trajectory downward but well above ZERO.  As with AGQ, a single day of sharp buying will cause a trend line break BUY signal.  

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This next chart of the SPDR Gold Trust ETF (GLD) may provide the most interesting clue of all, and it is this:  the open gap, as seen on the other three charts, is already filled. This suggests the possibility to me that this downdraft in not only GLD, but precious metals generally, may have already concluded. If not, then I would expect GLD to trade essentially sideways early next week, somewhat within the region of the gap, with the TSI drifting laterally towards the trend line drawn in red - preparing for the breakout.

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And finally, let's have a look at the Global X Silver Miners ETF (SIL). My impression is that of the four charts, SIL has clearly been the strongest.  I base this impression on the degree to which the TSI has been able to sail high above the ZERO crossover line.  It would do me well to rebuy SIL when the next breakout is confirmed. 
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The same dynamics as the other charts are in place; the impossibly steep sloped TSI trend  line that will be bullishly broken with a single strong day, the open gap just above a significant layer of support and a TSI that could well turn north without even crossing below ZERO.
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With gold, silver and their miners all saying the same thing with their charts, I think when one breaks they will all break within a matter of a day or two.  That would be an excellent time to load up, in my opinion.
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My TSI Trading record has not been updated as I am having 'technical difficulties' with getting it uploaded to the website.  Google keeps giving me an 'Error 400' message and I may have to redo the entire thing....perhaps break it into several smaller web pages.  Darn it.